Bait and switcharoo...
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Elite HDF Member
Joined: Nov 2006
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From: Hollyweird,FL
Bait and switcharoo...
I got one of those mailings that you occasionally get from a financial institution offering to refinance my "auto" loan...it had my current payment and how much they could save me a month if I gave them my business. Being that the savings was substantial and they were gonna kick in a 50 dollar gift card, and no payments for 90 days..I figure WTF, why not see what they got. So I call them up and get the guy on the phone, and he's blowing smoke up my azz about my superior credit rating (his term), and how much they can save me..yada, yada, yada. after about 5 mins of his BS I said "let's cut to the chase"..what's my rate gonna be and can you guarantee it? Then he asks well what kind of car is it? I said "It's not"...silence..."It's not a car?" "Nope it's a bike"...ohhhhhhh.....well thats different, we have different rates for motorcycles...(sound of paper rustling, and computer keys clicking and several minutes later he says..."Ok your rate will be 6. something". The original rate on a car was 3. something...I thanked him for wasting my time and hung up...and yeah all this has a point. WTF is there such a large difference in rates between a car and a bike, I truly don't get it. Maybe I'm thick but a vehicle loan is a vehicle loan...no? Can any of you financial wizards explain this logic to my dumb ***? Oh and somewhere in the conversation he confessed to owning a Metric.."but most of the guys I ride with have Harleys"...I should have known it wasn't go end well when he said that...
Tourer
Joined: Mar 2009
Posts: 399
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From: Orange Park / Jacksonville, Florida
Bert, what CU do you belong to? I just checked my CU...where my wife works... and they have 2.79% on new autos and 6.0% on new motorcycles, both at 48 months. Used autos and scooters are even higher.
Road Master
Joined: Nov 2008
Posts: 890
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From: Fayetteville Arkansas
Rates are higher on bikes because of the repo rate. During hard times it's usually the bike that goes first ( before their car ) in most cases. Plus some think they want a bike, spent $20k+ but never ride it. End up letting it go back.
I don't agree, just stating the facts.
I don't agree, just stating the facts.
Ultimate HDF Member
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From: SW Florida
Last edited by Bertk; May 17, 2011 at 02:54 PM.
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Elite HDF Member
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From: Hollyweird,FL
Suncoast Schools Federal Credit Union. Scroll down and click on "Harley Davidson Motorcycles. Special financing for your special bike."
Ultimate HDF Member
Joined: Mar 2008
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From: SW Florida
That's a bummer. Check with Gabe. I believe he belongs to a credit union over there.
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Elite HDF Member
Joined: Dec 2009
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From: navarre ohio
i got one of them calls a few years ago..i had 1 year at $250/month to pay off my truck.they offered me something like 180 for 4 years..i wonder how many dipshits fall for that
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Cruiser
Joined: Jan 2007
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From:
While you and I see both a car and motorcycle loan as one in the same rarely do the banks think this.
Banks treat car loans as "a necessary" expenditure item in the household. So that you are more then likely to make sure that the car payment gets made each month. Got to have a car to get to work and live.
For motorcycles the bank assumes this is a discretionary expense. ie. "an unnecessary toy" and that you probably already have a car. In this case they bump the interest rate a little higher then the car with the idea being, since this person has a car and a bike if they run into hard times they will let the bike go back to lien holder first. In this case the bank charges a higher interest rate because they are taking a bigger risk with their money, and want to make it back in interest quicker.
Banks treat car loans as "a necessary" expenditure item in the household. So that you are more then likely to make sure that the car payment gets made each month. Got to have a car to get to work and live.
For motorcycles the bank assumes this is a discretionary expense. ie. "an unnecessary toy" and that you probably already have a car. In this case they bump the interest rate a little higher then the car with the idea being, since this person has a car and a bike if they run into hard times they will let the bike go back to lien holder first. In this case the bank charges a higher interest rate because they are taking a bigger risk with their money, and want to make it back in interest quicker.
Road Warrior
Joined: Dec 2007
Posts: 1,605
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From: Mesa AZ
When I bought my bike I took the dealer financing for convenience, intending to compare rates later with my CU. I found out my credit union didn't offer a better rate. I have been with them for 15 years and have excellent credit so I figured that was the best rate around. Wrong!
2 years later (6 months ago) I had a bad experience with a "customer service rep" as I was abtaining a loan for an RV. I looked around and found another CU willing to give me a 5% better rate. I soon after refinanced my bike with them at a 4% rate decrease. I saved a year on the loan and my payment is still lower. So much for customer loyalty. I now know how much it pays to shop around.
By the way my old credit union is now pitching 2.99% loans. Too late.....
2 years later (6 months ago) I had a bad experience with a "customer service rep" as I was abtaining a loan for an RV. I looked around and found another CU willing to give me a 5% better rate. I soon after refinanced my bike with them at a 4% rate decrease. I saved a year on the loan and my payment is still lower. So much for customer loyalty. I now know how much it pays to shop around.
By the way my old credit union is now pitching 2.99% loans. Too late.....
Last edited by 2of2; May 18, 2011 at 03:16 PM.